Sembcorp & BCG Partner For RE Development

• Sembcorp Industries' subsidiary signs agreement with subsidiary of renewable energy company Bamboo Capital Group
• Sembcorp and BCGE to jointly develop a pipeline of up to 1.5 GW of wind and solar projects in Vietnam
• Vietnam aims to increase its solar and wind capacity to about 21.4 GW and 12.5 GW by 2030 respectively
• This agreement will not have material impact on the earnings or net asset value of Sembcorp for this financial year, ending December 31, 2021

Singapore's Sembcorp Utilities has signed an agreement with renewable energy company Bamboo Capital Group's subsidiary, BCG Energy (BCGE) to develop renewable projects in Vietnam.

As per the agreement, Sembcorp and BCGE will jointly develop a pipeline of up to 1.5 GW of wind and solar projects in Vietnam. This is aligned to Vietnam's 8th national power development plan (PDP VIII), where the country has prioritised developing renewable energy sources with an aim of increasing its solar and wind capacity to about 21.4 GW and 12.5 GW by 2030 respectively.

Speaking about this agreement, CEO of Singapore and Southeast Asia Sembcorp Industries Koh Chiap Khiong said, "Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green. BCG Energy is an established and strong local developer in both wind and solar projects, and we're pleased to partner with them to bring in our next wave of investment in renewables to Vietnam."

Meanwhile, Sembcorp added that this agreement is not expected to have a material impact on the earnings or net asset value of its parent company Sembcorp Industries for the financial year ending December 31, 2021.

Earlier this month, Sembcorp Industries had acquired a 35% stake in 1.9 GW solar and wind energy portfolio of SDIC New Energy (see Sembcorp Expands China RE Portfolio)